Seattle tech conglomerate Amazon to buy Foster City self-driving start-up Zoox Inc.



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Seattle tech conglomerate Amazon to buy Foster City self-driving start-up Zoox Inc.

Amazon.com Inc., the Seattle, Washington-based world’s No. 1 online retailer, had reached an accord to purchase the Foster City, CA-based autonomous driving start-up Zoox Inc. at a buyout deal that sources familiar with the issue said could be worth over $1 billion, suggesting a sagacious Amazon move to bolster its footings into the highly congested self-driving technology market.

More importantly, as Amazon.com Inc. had rolled out a program earlier this year to create its own delivery network and had slashed its tie-up the US-based parcel carrier FedEx, latest Amazon deal would likely to provide the Seattle retailer Chief Jeff Bezos, the world’s richest man to date, with ample opportunity to capitalize on Zoox Inc.’s self-driving technology to boost up his delivery network alongside ride-hailing services.

As a matter of fact, latest Amazon.com Inc. deal came forth a day after Google’s self-driving unit Waymo had rubber stamped an accord with the Swedish heavy vehicle manufacturer Volvo Cars Groups to develop autonomous vehicles for ride-hailing purposes, suggesting a sophisticated corporate battle at large between the world’s largest online retailer and the Alphabet Inc.

owned world’s No. 1 internet services provider.

Amazon’s Zoox buyout deal to strengthen Bezos’ footings in autonomous vehicle industry

On top of that, the world’s No.

1 online retailer had tapped into the self-driving car sector earlier this year by participating in a self-driving start-up Aurora Innovation Inc.’s $500 million fundraising campaign, while the latest Amazon deal to purchase the Foster City, CA-based self-driving start-up would likely to heat up competition on autonomous vehicle R&D, suggested analysts.

Meanwhile, although either of the companies had declined to disclose the financial terms of the deal, a report from The Information newspaper was quoted one of the sources as saying that the online retailing industry behemoth had agreed to pay over $1 billion to purchase Zoox Inc.

However, amid growing media speculation regarding the latest Amazon.com Inc.’s Zoox buyout deal, the companies said in a joint statement on Friday that the Zoox CEO Aicha Evans and its CTO (Chief Technology Officer) Jesse Levinson would lead the company as a standalone business despite having been bought by the Seattle tech conglomerate.